The longstanding trade conflict between the United States and China has intensified, with the White House reaffirming on Wednesday that tariffs on certain Chinese imports will be raised to 104%. The Biden administration justifies this move as a direct response to Beijing's retaliatory actions.
On April 2, U.S. President Donald Trump announced an additional 34% tariff on Chinese goods, bringing the total tariff rate to 54%. In response, the Chinese government declared that it would impose a 34% additional tariff on American products starting April 10.
President Trump had previously warned other countries against taking retaliatory steps, stating that doing so would trigger even harsher trade penalties. China's firm response appears to have prompted Washington to raise the stakes.
White House spokesperson Karoline Leavitt explained that the decision to increase tariffs further was made in reaction to China's countermeasures. Earlier, Trump had stated via social media that China was eager to strike a deal but was unsure how to proceed. "We're waiting for them to call. It’s going to happen!" he wrote.
Trump also claimed that the tariffs were generating $2 billion a day for the U.S. economy. However, Beijing remains defiant. The Chinese Ministry of Commerce announced that it would fight the tariffs "to the very end" and described Trump’s additional 50% tariff threat as “a series of mistakes.”
The mutual unwillingness to back down raises concerns that this economic confrontation could escalate further, with potential ripple effects for the global economy.